Bitcoin Miner Bit Digital Files to Raise Up to $500M in Equity

Bitcoin miner Bit Digital (BTBT) filed a prospectus with the U.S. Securities and Exchange Commission (SEC) for the sale of up to $500 million in equity from time to time, also known as an “at-the-market” (ATM) offering.

• The equity offerings may include ordinary shares, preferred shares (including convertible preferred shares), warrants and units comprised of any combination thereof, according to the filing.
• The company said the proceeds would be used for general corporate purposes, including capital expenditures, buying new mining equipment, other potential acquisitions and general working capital.
• H.C. Wainwright will act as the underwriter if Bit Digital sells ordinary shares and will offer to sell about 181.8 million shares, implying a roughly 241% increase in outstanding shares, if all of the $500 million worth of shares are sold.
• That being said, the prospectus is a “shelf” registration, meaning there is no present intention to immediately sell all the securities being registered.
• Bit Digital migrated all of its bitcoin (BTC) mining rigs in North America from China last year amid China’s sweeping ban of the industry. Almost 40% of its machines have came online in North America as of March 16.
• The rest of the miners that are awaiting installation in the U.S. are expected to be installed at sites operated by Compute North and/or at the new facilities to be operated by Digihost and Blockfusion in upstate New York this year, the company said in the filing.
• Bit Digital’s offering comes shortly after one of the largest bitcoin miners, Riot Blockchain (RIOT), filed a similar prospectus to sell up to $500 million shares in an ATM offering. And another miner, Mawson Infrastructure (MIGI), also announced this month it was looking to raise up to $500 million in equity offerings.
• Bit Digital’s shares were unchanged after-hours, but have fallen about 58% this year, compared with bitcoin’s decline of 13%.